Written evidence submitted by The League of Independent Producers Impact of Covid-19 on the UK theatre industry 1. About The League of Independent Producers 1.1. The League represents independent commercial theatre producers and managers responsible for the majority of West End productions, and the vast majority of independent producers operating elsewhere in the UK.1 (Schedule 1). 1.2. League members presented over 2000 “playing weeks” of performances throughout the UK in 2019 and are responsible for the employment of thousands of workers in the sector. 1.3. Such productions include: Girl From The North Country, Mamma Mia!, The Lehman Trilogy, The Play That Goes Wrong, Tina: The Tina Turner Musical, and Wicked the Musical. (Schedule 2). 2. Executive Summary. 2.1. In 2018, UK theatres generated ticket revenue of £1.28 billion, reaching an audience of 34 million people.2 For context, more people see a West End show each year than attend a Premier League football match.3 2.2. The theatre sector supports the UK’s multibillion-pound film and television industry4 by launching the careers of actors5, writers6 and producers (including League members responsible for the Oscar-winning film, 1917).7 2.3. As a result of Covid-19, all theatre productions across the UK have closed.8 9 Theatre producers have lost their income source and have had to furlough or terminate the employment of thousands of workers in the sector. 2.4. Given the scientific advice regarding social distancing, it is the League’s view that performances won’t be able to fully resume until late 2020 at the earliest, and more likely 2021. Without financial support until and following theatres re-opening, the UK will become a “cultural wasteland”.10 2.5. Challenges. The sector faces significant ongoing challenges: 2.5.1. Social Distancing: Social distancing is not possible in a theatre for either patrons or employees.11 12 Theatres need to either be fully open, or fully closed. The social distancing necessary for vulnerable groups and recommended for all people13 makes theatrical productions economically unviable.14 15 2.5.2. Audience Reluctance: Audience research shows that only 19% of audiences would return to venues “just because they open again”.16 Productions will have significant difficulty attracting an audience as theatregoers will be fearful of contracting Covid-19.17 18 19 20 2.5.3. Reduced Demand: Demand for theatre will be substantially lower due to an anticipated recession,21 increased levels of unemployment, and drastically lower rates of international and domestic tourism.22 23 2.5.4. Insurance Risk: Productions will be unable to obtain cancellation insurance should any of the personnel employed on a production contract Covid-19. Without such insurance, productions cannot proceed. 2.5.5. Difficulty Raising Investment: Raising commercial investment will be significantly more difficult due to an increase in real and perceived risk by investors, for which lack of insurance will a major issue. 2.6. Recommendations. To support the theatre sector, the following government assistance is needed: 2.6.1. Mitigate Risk: Provide or underwrite production cancellation insurance regarding communicable diseases. 2.6.2. Encourage Private Investment: Increase the rate of Theatre Tax Relief24 to 50% of 80% of total expenditure for a period of three (3) years from 1 January 2020, including any new expenditure associated with resuming performances once theatres re-open. 2.6.3. Back Business: Extend the business rates holiday25 to all businesses in the sector, not just theatre buildings. 2.6.4. Protect Institutions: Support non-profit theatres through additional grants to the Arts Council to provide relief. 2.6.5. Boost Regional Touring: Provide funding through Arts Council grants to encourage regional touring. 2.6.6. Reduce Unemployment: Continue funding the Job Retention Scheme26 and the SEISS27 for the theatre sector at least until the sector is fully operational so that employees maintain a connection with their job. 3. Impact of Theatre. 3.1. Economic Value. According to DCMS, in 2018 the Creative Industries contributed £111.7 billion to the UK economy of which the Cultural Sector contributed £32.3 billion,28 employing 659,000 people, being 2% of all UK jobs.29 3.2. In 2018, venues represented by The Society of London Theatre30 and UK Theatre31 generated ticket revenue of £1.28 billion and VAT for the Treasury of £213 million, reaching an audience of 34 million people.32 3.3. Cultural Value. As the Chancellor, Rishi Sunak MP, noted in the House of Commons on 12 May 2020: “The creative industries play an incredibly important part of our economy in this country, and they are also one of our great exports around the world and add to our soft power.”33 3.4. This is reflected in the Portland Soft Power Index, where the value and importance of culture is attributed as being directly responsible for the UK maintaining its position as a global leader.34 3.5. Theatrical productions produced by League members that originated in the UK in recent years before travelling the world include Harry Potter and the Cursed Child, Girl From The North Country, The Lehman Trilogy, Six The Musical, and Tina: The Tina Turner Musical. Case Study: The Play That Goes Wrong The Play That Goes Wrong by Mischief Theatre and produced by League member, Kenny Wax, has become one of the UK theatre sector’s great success stories. Wax produced a commercial UK tour of the production in 2014 commencing at the Marlowe Theatre run by Canterbury City Council. He subsequently transferred it to the Duchess Theatre in the West End where it won the Olivier Award for Best New Comedy and was still playing six years later until Covid-19 forced the suspension of performances. Wax and Mischief Theatre have issued 35 international licenses and the show has been performed on six continents. The production became the fifth-longest running play in the history of Broadway, and prior to the lockdown it was still playing Off Broadway and on its second major US National Tour. The ‘Goes Wrong’ brand has spawned further productions, including Peter Pan Goes Wrong – which has enjoyed two UK tours, played twice in the West End, and been adapted for a BBC1 Christmas Special – and Magic Goes Wrong, which was a collaboration with Las Vegas Legends Penn & Teller. The Goes Wrong Show was commissioned by BBC1 in 2018 and broadcast in a primetime slot in 2019. A second series has been greenlit and – should social distancing be relaxed – it will be shot later this year and broadcast in 2021. 3.6. Value to the Wider Arts Sector. Theatre exists within and is integral to the ecosystem of the wider arts sector. Many of the UK’s biggest stars of film and television first made their start in theatre, from Judi Dench35 and Ian McKellen,36 to Jude Law37 and John Boyega.38 3.7. This influence continues behind the scenes. During the lockdown, 5.8 million people in the UK watched the final episode in real-time of the three-part limited television series, Quiz.39 It was written by James Graham, whose first play was produced at age 22 at the Finborough Theatre in 2005,40 and Quiz itself was an adaptation of Graham’s own play by the same name. 3.8. Other examples include writers Phoebe Waller-Bridge – known for Fleabag, Killing Eve, the upcoming James Bond film, No Time To Die – and Chris Chibnall, whose first play was presented as part of Contact Theatres’ Young Playwright’s Festival and who later went on to create the award-winning ITV drama, Broadchurch, and is currently the writer and executive producer of Doctor Who.41 3.9. Following their hugely successful tenure at the Donmar Warehouse Theatre, League members Sam Mendes and Caro Newling set up Neal Street Productions with film and television producer Pippa Harris. Alongside their many stage productions produced under the Neal Street banner, they are responsible for producing numerous hit British films and television series, including Call The Midwife, The Hollow Crown, Penny Dreadful, and the BAFTA, Golden Globe and Academy Award-winning film, 1917. 3.10. League members Robert Fox and Matthew Byam Shaw are among the producers responsible for the hit Netflix series, The Crown, as a direct result of their collaboration with writer Peter Morgan on the stage play, The Audience. 3.11. Health and Wellbeing. The arts make a significant contribution to the health and wellbeing of society as a whole. It can aid recovery, support longer lives better lived and help meet major challenges facing health and social care.42 3.12. As Matthew Hancock MP noted in his first major speech as Health Secretary: “We know what the NHS does is life-saving. But what the arts and social activities do is life- enhancing. You might get by in a world without the arts, but it isn’t a world that any of us would choose to live in. We shouldn’t only value them for the role they play in bringing meaning and dignity to our lives. We should value the arts and social activities because they’re essential to our health and wellbeing. It’s scientifically proven. Access to the arts and social activities improves people’s mental and physical health.”43 3.13. In 2018/19 in England, 77% of adults (aged 16+) engaged with the arts44, and 29% of adults attended a theatre production.45 3.14. A key finding of DCMS’ annual Taking Part survey was that people who “have attended arts events in the last 12 months are significantly happier than those who have not, even when other factors influencing happiness are controlled for”.46 4.